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The Treasury's figures, released as the Chancellor sat down, state that the Welsh Government will have £1.3 billion to spend on capital projects in 2013-14. That's £0.2 billion more than was estimated for 2013-14 under last year's budget plans.

However, it's down on the £1.4 billion the Treasury now estimates will be the total capital spending in 2012-13. The main revenue spending total for 2013-14 remains £13.5 billion.

After the Budget Speech, the Treasury will set out how much money it's planning to give the Welsh Government over the next couple of years. Last year it was £13.5 billion for 2013/14 plus £1.1 billion to spend on capital projects such as new schools and hospitals, roads and other infrastructure.

If the Chancellor boosts capital spending, there might be another £0.1billion or so. But if it's financed by cuts in Whitehall, there could also be a cut in the Welsh Government's £13.5 billion. It all depends where the cuts fall, as savings in non-devolved areas won't affect the Welsh Government.

It's keen to get back some of the 40% cut made to capital spending in George Osborne's first Budget. The Welsh Government argues that the money could help to kick start the economy. What's problematic is where that money comes from, as the Welsh economy depends heavily on public sector employment.

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The Chief Secretary to the Treasury has repeated his commitment to giving the Welsh Government powers to borrow money for major construction projects. Danny Alexander made his comments as he met Paul Silk, who's report recommended both borrowing and tax-raising powers should be transferred to Wales.

While the Treasury will need to consider this report very carefully, as I said in October I am committed to giving Wales new borrowing powers provided the Welsh Government takes financial responsibility through revenue raising powers. I think that the level of ambition in the Silk Commission recommendations is a very encouraging sign.